How to Incorporate My Church in Texas?

Churches can incorporate as non-profit organizations.

Churches incorporate in part because incorporation protects members from being held personally financially responsible for any debts or legal judgments the church incurs. Incorporation also means that a church must conduct itself as a corporation, down to holding business meetings for which accurate minutes are kept. The Texas Secretary of State's website states that "A nonprofit corporation is created by filing a certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code (BOC)". The church will be incorporated as a non-profit organization.

Difficulty:

Moderately Challenging

Instructions

1. Check to make sure the name of the church has not been taken by another organization in Texas by contacting the Texas Secretary of State at 512-463-5555 or [e-mail]. Reserve the name for up to 120 days by filing Form 501 (Name Reservation), available on the Secretary of State's Website.

2. Fill out the certificate of formation (Form 202), available on the Texas Secretary of State's website. This form includes information on the church's place of business, its purpose for incorporation, and information on the registered agent (can be a resident of Texas) of the church. It also includes information about the organization's dissolution of property and other details that allows it to seek federal tax exempt status.

3. Make two copies of the form, and send them, along with the $25 fee, to P.O. Box 13697, Austin, Texas, 78711-3697. You can also fax them to [phone] or deliver them to the James Earl Rudder Office Building, 1019 Brazos, Austin, Texas 78701.

Tips & Warnings

• Other steps included in forming a non-profit are to conduct its first board meeting, seek an Employer Identification Number (EIN) from the IRS (available on its website), fill out and submit Form 1023 with the IRS to obtain federal tax exempt status, obtain state tax exempt status from the Texas Comptroller of Public Accounts, and to register with the Texas Comptroller of Public Accounts if the church will fundraise in Texas.

References

• DocStock: How to Incorporate a Church
• Texas Secretary of State: Nonprofit Organizations
• TX Secretary of State: Form 202-General Information
• Forming a Nonprofit Tax Exempt Organization in Texas

Resources

• Texas Secretary of State: Form 501 (Name Reservation)
• Window on State Government: Exemptions for Qualified Organizations
• IRS: Tax Information for Charities & Other Non-Profits